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Global Digital Signature Market to Reach $2,934.6 Million by 2023

June 2017

According to a new research report “Global Digital Signature Market Size, Share, Development, Growth and Demand Forecast to 2023 - Industry Insights by Solution (Software and Hardware), by Services (Managed & Professional), by Deployment Mode (Cloud-Based and On-Premises), and By Application (Government, IT, Healthcare & Life Sciences, Finance & Insurance, Telecom, Retail, and Others)” published by P&S Market Research, the global digital signature market is projected to reach $2,934.6 million by 2023, growing at a CAGR of 24.1% during 2017 - 2023.

As per the research, the global digital signature market is likely to register a double-digit growth rate during the forecast period. Digital signature in the study refers to the use of digitized form of signature to reduce deception and promote security in documentations across various sectors, such as government, information technology, healthcare, finance and insurance, telecom, and retail. Growing security concern, increasing use of digital signatures to reduce deception, increasing adoption of digital signature-based biometrics in the banking, financial services and insurance (BFSI) sector and growing government focus towards eliminating paperless work is likely to spearhead the growth of the global digital signature market. In addition, the increasing e-commerce market and growing number of connected devices, including smartphone, tablet and laptop, is further expected to drive the demand of digital signature across the globe.

Insights on market segments

Government sector contributes highest revenue to the digital signature market, while finance & insurance, IT and healthcare & lifesciences are the other major application areas of digital signature market. The market is likely to register fastest growth from healthcare & lifesciences during the forecast period. On the other hand, cloud based deployment accounts for the larger revenue, as compared to on-premises, and it is further expected to be the leading segment on account of growing adoption of cloud based services and rising security concern.

The large market for cloud based deployment is owing to growing focus of the companies towards security and cost saving and growing need of organizations to attain economies of scale. Managed services contribute larger revenue in the global digital signature market, as compared to professional services.

The market to witness fastest growth in Asia-Pacific during the forecast period

Geographically, North America has been the largest market for digital signatures and Asia-Pacific had been the fastest growing regional market. The market in the region is also expected to grow at significant pace during the forecast period. By country, the U.S. stands as the largest market globally, whereas the market in China has been growing at highest pace.

The anticipated growth in the Asia-Pacific market can be attributed to factors such as improving BFSI sector and initiatives taken by various government associations for the elimination of paper work and enhancement in the use of digital technology in countries such as China and India. Further, increasing investment by digital signature software manufacturing companies across the Asia-Pacific is expected to drive the growth of digital signature market.

Government drive to replace paperwork with technology escalates the global market growth

The government in various countries are focusing towards reducing the paperwork and bringing paperwork elimination act across the respective countries. For instance, the U.S. government has implemented paperwork elimination act under which, the government is encouraging the enterprises for electronic and digital signature alternatives. According to the act, the electronic records and their related digital signatures are not to be denied validity, legal effect, or enforceability simply, because they are in electronic or digital form. As public awareness of electronic communications and internet usage has been increasing, the demand for online interactions with the federal agencies has also surged. The federal government also encourages the widespread usage of cryptographically-based digital signatures. The U.S. being the largest digital signature market globally, the implementation of such act is driving the demand of digital signatures.

Further, banking and insurance companies are also adopting digital signature for cost & time saving. The banking & insurance organizations records the customer signature into digital form, which would help in monitoring, time and cost saving, and expertise in delivering the services.

Digital signatures are helpful in eliminating frauds and thefts in many areas of security. According to the U.K. Health Services, the prescription falsification including deception cost over $100 million per year. Through the authentication of digital signatures by healthcare professionals, paper-based prescriptions can be digitally transferred from the doctor to hospital’s server, and then to patient's pharmacy, thus inhibiting a person’s ability to manipulate or forge the doctor’s prescription. Pharmacists have an online copy for the comparison of a patient’s digitized prescriptions, for the better healthcare services.

Moderate competition among key players

The research states that the global digital signature market is moderately competitive, with players investing heavily in research & development and enhancing the digital signature solutions to increase their market share. Some of the key players operating in the global digital signature market are Adobe Systems Incorporated, Secured Signing Limited, SIGNiX Inc., Entrust Datacard Corporation, Ascertia, Docusign Inc. and Gemalto NV.